|Spain: The poison of left thinking|
The yield on Spanish debt surpassed 7,5%. At the same time some Spanish regions are preparing to request a government aid. I.e. to ask for more money from lacking it government. It is obvious that Spain will be the fifth country to ask for EU help, after Greece, Portugal, Ireland and Cyprus. It is not clear if the EU bailout funds will be enough for Spanish needs.
I fact 7,5% interest is not a real market level. I always like to ask if someone is keen on investing in Spanish debt for only 7% profit? I receive no much positive answers. In fact no one wants to invest in Spanish bonds. The only investor are the Spanish banks that are doing this under political pressure. They are helped by pro-inflation policy of ECB that in times of high inflation is lowering the interest rates. So banks are borrowing at 0,75% and buying debt at 7%.
The Spanish debt has already become a gamble game. So it must offer a gamble income to be attractive. I.e. for 50 or 100% interest I can think about this. Some professional gamblers may be interested... :)))
But it is not the debt the main problem. The main problem is the thinking. The main injury from the previous decades of socialist system is the wrong and absurd thinking that was implemented in heads of population. People are not understanding the reality and are praying for the good old times of much money for everyone. In Spain millions are protesting against any attempt of spending cuts, that are nothing more than adjusting the incomes with real economy. This economy can no more pay the old salaries and pensions. But people are refusing to accept this and are ultimately asking for keeping the old system. Today even the policemen at a protest event took off their helmets and refused to fight the protesters.
But the protesters have no real and feasible requests. They are just fighting the government attempt to reduce costs. The protesters does not propose something logic and that will work. They are just rejecting the cuts.
The problem with thinking was well demonstrated after the fall of communism in Eastern Europe in the end of 80s. Even after the entire economic and political crash, much people kept their left and socialist thinking. This slowered the reforms that led to a higher price than was needed for the transition.
The same is happening in Western countries now. People are refusing to accept the needed reforms. This will lead just to heavier reforms and higher price. The socialist thinking is the main and most destructive poison that is injected in minds of people. We have a generation of deluded left-thinking citizens that do not understand that the left itself is an illusion and a lie. They believe social rights are something normal, and some greedy criminals are trying to steal their right from them.
In fact at the end the people will self-punish themselves...
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